(A) Purpose. It is the purpose of this chapter to regulate time, place, and manner of the operation of a cannabis business to promote the health, safety, and general welfare of the citizens of the city and to establish reasonable and uniform regulations to:
(1) Prevent unwanted criminal activity within the city;
(2) Prevent deterioration of neighborhoods and its consequent adverse effect on real estate values of properties within the neighborhood; and
(3) To locate cannabis businesses away from residential areas, schools, residential treatment facilities, day care facilities, parks and playgrounds.
(B) Findings. The City Council makes the following findings about the effect cannabis businesses have on the character of the city's neighborhoods.
(1) Cannabis businesses can have a detrimental influence on young people and students attending schools and day cares and can diminish the enjoyment and family atmosphere of persons using parks, playgrounds and other public recreational areas.
(2) Cannabis businesses can have a detrimental influence on people in residential treatment facilities.
(3) M.S. Chapter 342, as it may be amended from time to time, allows local government units to regulate cannabis businesses within city limits.
(4) Minnesota Statutes defines CANNABIS BUSINESSES as:
(a) CANNABIS MICROBUSINESS. Can grow, make, sell, and buy cannabis (including plants and seedlings) and lower-potency hemp products. They can also have on-site lounges where customers can use cannabis. These businesses can grow up to 5,000 square feet of cannabis plants indoors and up to one-half acre outdoors. This license may hold a cannabis event organizer license.
(b) CANNABIS MEZZOBUSINESS. Can grow, make, sell, and buy cannabis (including plants and seedlings) and lower-potency hemp products. Mezzobusinesses can grow up to 15,000 square feet of cannabis plants indoors and up to one acre outdoors. This license type is available in limited quantities, and licensees will be selected through a vetted lottery run by the Office of Cannabis Management.
(c) CANNABIS CULTIVATOR. Can grow cannabis plants from seed to maturity. They can grow up to 30,000 square feet of cannabis plants indoors and two acres outdoors. Cultivators are allowed to harvest, package, label, and transport fully grown cannabis plants to manufacturers. They can also package, label, and transport seedlings. This license type is available in limited quantities, and licensees will be selected through a vetted lottery run by the Office of Cannabis Management.
(d) CANNABIS MANUFACTURER. Process raw cannabis plants into various products, such as edibles, concentrates, wax, oils, and tinctures. Manufacturers can buy cannabis flowers, cannabis products, and lower-potency hemp products from other cannabis businesses. They turn these materials into cannabis products, then package and sell them to other cannabis businesses. This license type is available in limited quantities, and licensees will be selected through a vetted lottery run by the Office of Cannabis Management.
(e) CANNABIS RETAILER. Sell packaged cannabis products to the general public and medical patients. They can buy cannabis (including plants and seedlings) and lower-potency hemp products from other cannabis businesses and sell them to customers. This license type is available in limited quantities, and licensees will be selected through a vetted lottery run by the Office of Cannabis Management. A cannabis retailer may operate up to five retail locations; however, no person, cooperative, or business may hold a license to own or operate more than one cannabis retail business in one city and three retail businesses in one county.
(f) CANNABIS WHOLESALER. Buy cannabis, cannabis products, and lower-potency hemp products from cannabis businesses and then sell them to other cannabis businesses.
(g) CANNABIS TRANSPORTER. Businesses that move cannabis, cannabis products, and lower-potency hemp products between businesses.
(h) CANNABIS TESTING FACILITY. Receive cannabis, cannabis products, and lower-potency hemp products from manufacturers and cultivators to test. They ensure these products meet safety standards.
(i) CANNABIS EVENT ORGANIZER. Plan and host events featuring cannabis, and may allow for the sale of cannabis, cannabis products, and lower-potency hemp products to consumers at events like festivals (an event cannot last more than four days). They can also provide spaces for consumers to use cannabis. An event organizer must receive local approval, including obtaining any necessary permits or licenses issued by a local unit of government.
(j) CANNABIS DELIVERY SERVICE. May purchase cannabis and lower- potency hemp products from specific cannabis businesses and sell and deliver those products directly to consumers.
(k) LOWER-POTENCY HEMP EDIBLE MANUFACTURER. Produce edibles from hemp. These manufacturers can create, package, and label lower-potency hemp products, and sell them to cannabis businesses. This license type cannot hold any cannabis business licenses.
(l) LOWER-POTENCY HEMP EDIBLE RETAILER. Sell packaged lower-potency hemp edibles to consumers. This license type cannot hold any cannabis business licenses.
(m) MEDICAL CANNABIS CULTIVATOR.
(n) MEDICAL CANNABIS PROCESSOR.
(o) MEDICAL CANNABIS RETAILER.
(p) MEDICAL CANNABIS COMBINATION BUSINESS. Can grow, manufacture, package, label, and sell cannabis products (including cannabis plants and seedlings) to both medical patients and adult consumers. These businesses can package and sell medical cannabis products to other eligible cannabis businesses. They are allowed to cultivate up to 60,000 square feet of medical cannabis plant canopy for distribution into the medical market, and depending upon the total amount of medical sales the year prior, up to an additional 30,000 square feet of cannabis plant canopy for distribution into the adult-use market.
(5) Businesses such as the types described in division (B)(4), and all other similar businesses, require close inspection, permitting, and regulations.
(6) Control and regulation of businesses of these types, in view of the abuses that may be perpetrated, require intensive efforts by the Police Department and other departments of the city. It is necessary for the city to provide services to all of the city without concentrating the public services in one area. The concentrated use of city services detracts from and reduces the level of services available to the rest of the city. Thus, if not properly overseen, these types of establishments can diminish the ability of the city to protect and promote the general health, welfare, and safety of the city.
(7) The limitation on the hours of operation and the regulation of exterior appearance, including signage, of cannabis business activities is necessary to protect and secure neighboring uses, to control adverse noise and traffic impacts associated with those activities, and otherwise address, mitigate and, if possible, eliminate the adverse impacts and secondary effects of cannabis business activities on the areas in which the activities are located or taking place.
(8) The City Council adopts the following land use and permitting regulations, recognizing that it has an interest in the present and future character of the city's residential and commercial neighborhoods. These regulations are to lessen the potential detrimental and adverse effects cannabis businesses may have on adjacent land uses and to protect and promote the health, safety, and welfare of the residents of the city.
(Ord. 105, passed 8-6-2024)